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Credit conditions improved in February -Kamakura

... The proportion of companies at risk of defaulting on their debt globally fell 0.27 of a percentage point in February to 9.96 percent of the more than 29,000 companies Kamakura rates globally.

The number of at-risk firms has declined from 24.3 percent in March 2009 and is down from the all-time peak of 28 percent in September 2001, Kamakura said in a statement. A company is considered troubled when its short-term default probability is greater than 1 percent.

The index´s all-time low was 5.4 percent in May 2006, said Kamakura, which is based in Honolulu.

Companies with the largest increase in short-term default risk in February included Blockbuster Inc (BBI.N), California-based Insight Health Services and Sweden´s SAS AB (SAS.ST), Kamakura said.

The number of companies globally with a default probability of more than 20 percent fell by 0.05 of a percentage point in February to 0.68 percent of the companies in Kamakura´s database. That is down from 3.1 percent in March 2009.

Those with a 10 percent to 20 percent default risk fell by 0.11 of a percentage point to 0.89 percent of the total universe, the company said.

Companies with a 5 percent to 10 percent default risk, meanwhile, rose by 0.02 of a percentage point to 1.57 percent in the month, and companies with a 1 percent to 5 percent default probability decreased by 0.13 of a percentage point to 6.82 percent, Kamakura said. 
 
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